Cerner (NASDAQ:CERN) and Asure Software (NASDAQ:ASUR) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Volatility and Risk

Cerner has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Asure Software has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Cerner and Asure Software, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cerner 0 7 11 0 2.61
Asure Software 0 0 8 0 3.00

Cerner currently has a consensus price target of $71.76, indicating a potential upside of 12.51%. Asure Software has a consensus price target of $21.00, indicating a potential upside of 70.87%. Given Asure Software’s stronger consensus rating and higher probable upside, analysts clearly believe Asure Software is more favorable than Cerner.

Profitability

This table compares Cerner and Asure Software’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cerner 16.06% 15.26% 11.34%
Asure Software -11.85% 9.05% 2.80%

Insider & Institutional Ownership

76.0% of Cerner shares are owned by institutional investors. Comparatively, 60.8% of Asure Software shares are owned by institutional investors. 4.7% of Cerner shares are owned by insiders. Comparatively, 18.2% of Asure Software shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Cerner and Asure Software’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cerner $5.14 billion 4.08 $866.97 million $2.20 28.99
Asure Software $54.44 million 3.39 -$5.72 million $0.45 27.31

Cerner has higher revenue and earnings than Asure Software. Asure Software is trading at a lower price-to-earnings ratio than Cerner, indicating that it is currently the more affordable of the two stocks.

Summary

Cerner beats Asure Software on 10 of the 14 factors compared between the two stocks.

About Cerner

Cerner Corporation provides health care information technology solutions and services in the United States and internationally. The company offers Cerner Millennium architecture, a person-centric computing framework, which includes clinical, financial, and management information systems that allow providers to access an individual's electronic health record (EHR) at the point of care, and organizes and delivers information for physicians, nurses, laboratory technicians, pharmacists, front- and back-office professionals, and consumers. It also provides HealtheIntent platform, a cloud-based platform that enables organizations to aggregate, transform, and reconcile data across the continuum of care, as well as EHR agnostic platform, CareAware, that facilitates connectivity of health care devices to EHRs. In addition, the company offers a portfolio of clinical and financial health care information technology solutions, as well as departmental, connectivity, population health, and care coordination solutions; and various complementary services, including support, hosting, managed, implementation, and strategic consulting services. Further, it provides various services, such as implementation and training, remote hosting, operational management, revenue cycle, support and maintenance, health care data analysis, clinical process optimization, transaction processing, employer health centers, employee wellness programs, and third party administrator services for employer-based health plans; and complementary hardware and devices for third parties. It serves integrated delivery networks, physician groups and networks, managed care organizations, hospitals, medical centers, reference laboratories, home health agencies, blood banks, imaging centers, pharmacies, pharmaceutical manufacturers, employers, governments, and public health organizations. Cerner Corporation was founded in 1979 and is headquartered in North Kansas City, Missouri.

About Asure Software

Asure Software Inc. provides cloud-based software-as-a-service time and labor management, and workspace management solutions worldwide. The company's product line includes AsureSpace workplace management solutions that enable organizations to manage their office environments and optimize real estate utilization; and AsureForce time and labor management solutions to help organizations optimize workforce, as well as control labor administration costs and activities. It also offers AsureHCM, an integrated cloud-based platform that provides human resource services ranging from human resource management and payroll to benefits, talent acquisition, and performance management; Evolution HCM, an AsureHCM channel product that provide users with the flexibility and best practices to handle clients; and AsureConsulting that offers a suite of services to assist organizations through the entire employee lifecycle. In addition, it provides SmartView occupancy sensors and analytics platform that offers insights, which allow companies to make strategic decisions about real estate investments and workplace design; and SmartMove, a move management software that help companies design floorplans and track permanent seat assignments, as well as manage assets, such as telephones, laptops, desks, chairs, and other items assigned to an employee. Further, the company provides AsureSpace Resource Scheduler, a solution for the digital workplace that features conference room and desk reservations, service management, interactive floorplans, visitor management, calendar and Web conference integrations, and reporting; and NowSpace, a mobile app for Apple and Android devices that enables mobile workers to find and reserve desks and conference rooms from their smart phones. It serves clients ranging from Fortune 500 to small and mid-sized businesses directly, as well as through reseller and referral partners. Asure Software Inc. was founded in 1985 and is headquartered in Austin, Texas.

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